TDS Return & Payment Due Date For FY 2024-25

This article covers all the information about TDS related compliances.

Forms for Filing TDS Returns

However, if tax is deducted at source under Sections 1194-IA, 194-IB and 194M the deductor shall furnish a challan-cum-statement in Form 26QB, Form 26QC and Form 26QD, respectively. The deductor should provide the challan-cum-statement within 30 days from the end of the month in which TDS is deducted. As an exception, no return is required separately in such cases.

TDS Payment Due Dates

The dates for depositing the tax deducted at source and filing of TDS return for the financial year 2024-25 for all the deductors is shown in the below table-

*For the government deductors, making the TDS via book entry (Treasury Challan) should be deposited on the same day of deduction, whereas for March month by 7th of April.

Penalty for Late Filing of TDS/TCS Returns

Late Filing Fee (Sec 234E)

Under Section 234E, a fee of Rs. 200 for every day would be charged for late furnishing of TDS/TCS statements from the due date of furnishing of the statements till the date of furnishing of the statements. However, the total amount of the fee cannot exceed the total amount of tax deductible/tax collectible and such fee has to be paid before delivering the TDS/TCS statements.

For example: Say that you have deducted TDS of Rs 5000 on 13th May 2024 and you file the return for Q1 on 17th November 2024 instead of the due date 31st July 2024.

The delay is 109 days counting from 1st August 2024 to 17th November 2024.

Then the calculation comes out to Rs 200 x 109 days = Rs 21,800, but since this amount is greater than TDS Rs. 5,000, you will have to pay only Rs. 5,000 as the late filing fee.

In addition to this, you also have to pay interest for delay in deposit of TDS which is covered in the next section.

Penalty (Sec 271H)

The Assessing Officer may direct a person who fails to file the statement of TDS/TCS within the due date to pay a minimum penalty of Rs 10,000 which may be extended to Rs 1,00,000. The penalty under this section is in addition to the late filing fee u/s 234E. This section will also cover the cases of incorrect filing of TDS returns.

No penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if the following conditions are satisfied:

• The tax deducted/collected at source is paid to the credit of the Government.
• Late filing fees and interest (if any) is paid to the credit of the Government.
• The TDS/TCS return is filed before the expiry of a period of one year from the due date specified on this behalf.

Interest on Late Deposit of TDS

Note: The above interest should be paid before filing of TDS return.

Under Section 201(1A), in case of late deposit of TDS after deduction, you have to pay interest. Interest is calculated at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of deposit. 

Note: The interest is to be calculated on a monthly basis and not on the number of days i.e. part of a month is considered as a full month.

• For example, the date of deduction of TDS of Rs 5,000 is 13th January 2024. If you pay TDS on 17th May 2024, then the interest you owe is from 13th January 2024, i.e. is Rs 5000 x 1.5% p.m. x 5 months (Jan-May)= Rs 375.
• “Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.
• The interest is calculated from the date on which TDS was deducted and not from the date TDS was due.
• Also, consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 21st February 2024. Then the due date is 7th March 2024. If you deposit tax on 8th March 2024 (i.e. one day after the due date). Then interest is applicable from 21st February 2024 to 8th March 2024 i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3% on the TDS amount.

Prosecution (Sec 276B)

If a person fails to pay to TDS to the credit of the Central Government as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term not less than three months but which may extend to seven years, and with a fine.

Penalty provisions due to COVID-19 lockdown 2020

In the wake of the lockdown, the department has waived off all the penalty provisions for the period between 20th March 2020 to 30th June 2020 as per the Ordinance 2020. In the normal period of business, a penalty equal to the amount that was failed to be deducted/collected or remitted may be imposed.

Penalty for Late Payment or Non-Payment of TCS

If the person fails to deposit to the government TCS under Section 206C within the prescribed due dates, he shall be punishable with rigorous imprisonment for a term not less than three months but which may extend to seven years and with a fine.

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